Zhihua, CEO of Sport: The challenge of the electric business is "only low price" criterion

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The former has Li Ning, after the United States, the domestic clothing industry inventory of landmines within six months of a row, which also made the beginning of 2012 to determine the total inventory of the horse sports do not slack. As one of the representatives of the Jinjiang department sporting Goods brand, the horse has been plagued by the high level of inventory and the serious questioning of homogeneity in recent years after the high speed development and the favorable listing in Hong Kong.

Recently, the chief executive of Zhihua Sporting Goods Co., Ltd., said in an interview with reporters: "The elimination of inventory targets identified earlier this year, the current progress is still within expectations." But the whole industry is going to really get out of trouble next year. ”

In 2012 this year, the adjustment of the line in the pipeline, the refinement of the reform and the electric business relocation and other initiatives, the current view has been gradually clear.

"Back rule."

This year, the disclosure of data, Li Ning, Anta Sports, horse, 361 degrees and China's trend of five sports brands listed companies in a slump in revenue, only a special step in a sales revenue to achieve growth.

Among them, in the first half of 2012, the total revenue from 2.256 billion yuan significantly reduced 28.5% to 1.61 billion yuan, while the net profit also fell to 240 million yuan, the year-on-year decrease of 43.3%.

Then came the sound of shop closures and dealers complaining. Faced with the collective plight of the industry, Zhihua said that the real core of the inventory crisis is from the high growth of enterprise expectations and the reality of supply and demand imbalances. "This year is a critical point for both high growth expectations and sluggish consumption, resulting in a collective increase in inventories." This year and even next year will be the industry's adjustment year. ”

According to the information at the beginning of the year, the retail terminal inventory of 1 months, the distributor inventory of 5-6 months, overall about 6 months. "The group is committed to digesting its inventory this year and will be able to solve the inventory problem in the years. "One of the solutions is to reduce performance expectations and compress the" back rules "of order volume. Mr. Liu Xiang, deputy director of public relations, told the media that 2012 would reduce growth expectations below 20%.

In January this year, the company announced adjustments to the first to second-quarter order, the total number of orders in the first two quarters fell by 20% to 30%, and the retail outlets from the end of 2011 7,806 closed to 7,000.

Zhihua said, "Our biggest channel reform is refinement, in the past we are the province generation pattern, now gradually develops to the land level generation pattern." That is to say, the original a provincial agent, is now two or three prefecture-level cities and even a city-level agent, so that the channel to build more flat. ”

However, as a listed company of Hong Kong stocks, the way to reduce the expected to be recognized by the market? This year, the stock price of sports has been hovering at a low point, the October 25 closed to HK $1.52/share, the price than the same period two years ago, the 6.18 Hong Kong dollar/shares have been not the same.

"Some investors are now likely to pursue short-term interests more, but as big shareholders need to balance short-term and long-term benefits." The operation is difficult to say, at least our cash flow is not so ugly, although the profit has slipped, but also maintained on a certain base. ”

Electric Dealer Turn Around

As the usual means of stock-dumping for sporting goods enterprises, the power of the electric business platform continues to expand. However, in recent years, the brand dealers rebounded seriously, the protest to the line "price Civil war" serious internal friction.

Zhihua said that in 2006 years began to enter the field of electrical business, the biggest challenge is the Chinese electric Power has formed the only low price criteria. This will inevitably make the electricity and the line under the formation of a certain contradiction, for the company is very painful.

"After a period of adjustment, the company decided to" under the main line, the electricity quotient supplemented by "strategy, the decision board debate for a long time, because although very meaningful but not easy to operate. Specifically, the company defines the business as an extension of our offline consumption, sales of goods over the season and additional authorized sales of some limited edition products, resulting in a platform based on affiliate marketing. Zhihua said, "At present the company is doing the work is to all the offline store membership system through, already has a hundred thousand of members." ”

As the manager itself, Zhihua has invested as an angel investor in a custom footwear website called "Love C2b" this year.

Referring to personal electric dealer attempts, Zhihua pointed out: "' Love is a guest ' is my understanding of the future E-commerce, E-commerce by the young people love, is the industry irreversible trend, so actively to participate is necessary." After that, there are some other electric-business projects. ”